“Thousands of depositors of SGRSBN were in trouble after the massive fraud came to light. The Center made several changes in the laws to protect the interest of the depositors. As a result, today more than 12,000 depositors received their deposit insurance cover, amounting to Rs 401 crore. Rs,” he told reporters.
He said that this has brought great relief to the depositors.
SGRSBN, based in Surya’s Lok Sabha constituency Bengaluru South, received a total of Rs 753.61 crore as deposit insurance from the Deposit Insurance and Credit Guarantee Corporation.DICGC) towards 21,983 claims, he said.
He said the first tranche of claims worth Rs 401 crore of 12,014 depositors of DICGC were paid on Monday and the remaining claims would be paid soon.
Further, Surya said that the DICGC has paid claims up to Rs 5 lakh without deducting Rs 1 lakh already paid by the bank and up to Rs 5 lakh paid by the bank for treatment of critical illness.
SGRSBN has 43,619 depositors, on which reserve Bank of India The regulatory restrictions were imposed on January 10, 2020, after the fraud of furnishing fake profit and loss statements came to light.
Surya said the cooperative bank has 33,390 account holders with deposits up to Rs 5 lakh and most of them are senior citizens and from the middle class.
Last year, the government brought cooperative banks under the purview of the RBI by amending the Banking Regulation Act. Earlier this year, the government amended the DICGC Act to increase the deposit insurance cover from Rs 1 lakh to Rs 5 lakh within 90 days of filing the application.